SINGAPORE- Asian stocks stuttered on Wednesday, while the safe-haven gold was stuck near record highs as a nervous world awaited details of US President Donald Trump’s tariff plans, with investors fretting about the risks of an intensifying global trade war.
Investor focus in recent weeks has been firmly on the new round of reciprocal levies that the White House is due to announce on Wednesday and which are expected to take effect immediately after Trump announces them.
Trump has already imposed tariffs on aluminum, steel and autos, along with increased duties on all goods from China that have rattled markets as fears grow a full-blown trade war could trigger a sharp global economic slowdown.
Asian stocks fell in early trading, after a choppy US session. Japan’s Nikkei slipped 0.3 percent and South Korea’s benchmark index was 0.57 percent lower.
On Wall Street, the benchmark S&P 500 and the Nasdaq ended higher after losing ground earlier in the session. The Dow finished a shade lower.
“We find our trading environment in a state of chop, with the whippy price action across markets being thematic of market players massaging exposures around the edges and not wanting to commit,” said Chris Weston, head of research at Pepperstone.
Chinese stocks opened slightly mixed, with the blue-chip index up 0.14 percent. Hong Kong’s Hang Seng was 0.3 percent lower in early trading.
“Trump has called April 2 ‘Liberation Day’ but it is unlikely that investors will truly be liberated from tariff uncertainties,” said Vasu Menon, managing director of investment strategy at OCBC.
“If countries retaliate, Trump could up the ante – this possibility will probably continue to keep investors nervous.”
